LME Zinc to Grow on Short-Covering (2016-3-2)

Market focus this week include: the annualised reading of new housing starts in the United States in August, the initial value of the manufacturing PMI in the Eurozone in September, and the initial value of the Markit manufacturing PMI in the United States in September; China's one-year loan market quotation interest rate as of September 22. In terms of events, FOMC will announced the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; and the European Central Bank will announces an economic bulletin.

Many zinc traders contributed the surge in zinc market mainly to two factors, 21st Century Business Herald reported. 

The price spread between domestic and imported zinc has narrowed recently, SMM noted.

TCs of domestic zinc concentrate (50%) stabilized at 5,200-5,400 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $110-130 per dry metric tonne (DMT)

Zinc market has been rising in recent days. Will the rising momentum continue? SMM surveys major 25 domestic galvanized plants for a whole picture of the market.

The US dollar index fell further, bolstering base metals.

The market will lack solid macroeconomic news today.

SMM survey of over 30 industry insiders finds that 57% are neutral, expecting LME zinc to hover between USD 1,570-1,630/mt and SHFE 1604 zinc to fluctuate between RMB 12,900-13,300/mt.

LME zinc is expected to fluctuate at highs between $1,550-1,630 per tonne next week.

There will not be any significant macroeconomic news today.